Table 7.1 shows revenue and cost information for Sally's small business. Sally owns a small business that she operates in a building she owns. Given the information in the table below, Sally's accounting profit is equal to _____.
Table 7.1

A)$80,000
B)$50,000
C)$65,000
D)$35,000
E)$24,000

Question

​Table 7.1 shows revenue and cost information for Sally's small business. Sally owns a small business that she operates in a building she owns. Given the information in the table below, Sally's accounting profit is equal to _____. ​
Table 7.1
​

A)$80,000 
B)$50,000 
C)$65,000​ 
D)$35,000​ 
E)$24,000​

Quizplus · Accepted Answer

Sally's accounting profit can be calculated by subtracting total explicit costs from total revenue. 
Total revenue = $200,000 + $30,000 = $230,000 
Total explicit costs = $80,000 + $50,000 + $15,000 = $145,000 
Accounting profit = Total revenue - Total explicit costs 
= $230,000 - $145,000 
= $85,000 
Therefore, Sally's accounting profit is $65,000 (Option C).

​Table 71 Shows Revenue and Cost Information for Sally's Small Business

Table 71 Shows Revenue and Cost Information for Sally's Small Business